Growth Points: Branded Loyalty Rewards
Growth Points are Frega's branded loyalty reward system where businesses reward customers for their support, building lasting relationships and creating organic growth through genuine community engagement.
This is our primary tool for platform growth—when businesses reward customers and customers share their experiences, our community expands organically.
What Are Growth Points?
Growth Points are a loyalty currency that businesses issue to reward customer purchases and engagement. Each business's points are independently branded—so you might earn "Bob's Barber Growth Points" or "Sarah's Café Growth Points"—but all your points from different businesses appear in a single, easy-to-use wallet.
Key Characteristics
- Business-Specific: Points are branded to each business and redeemable only with that business
- Single Wallet: Customers see all their points from all businesses in one place
- Integrated Chat: Issuing points automatically establishes direct communication channels
- Database Building: Creates detailed records of customer preferences and purchase history
- Community Growth: Satisfied customers naturally share, bringing new users to the platform
Important: Growth Points are a loyalty reward, not a financial instrument, investment, or security. They have no cash value and cannot be transferred between users.
How It Works for Businesses
Issuing Growth Points
When a business wants to reward a customer, they pay a small fee (typically 1% of the transaction value) to issue Growth Points. The process is simple:
- Customer makes a purchase or completes a desired action
- Business decides how many Growth Points to issue (typically based on purchase value)
- Business pays the 1% fee through Frega
- Points are immediately credited to the customer's wallet
- Communication channel is established through Frega Chat
The Business Benefits
Direct Customer Relationships: Every point issuance creates a record in your customer database, building a detailed understanding of who your customers are, what they purchase, and when they engage.
Communication Channels: Frega Chat integration means you can now communicate directly with customers—send targeted offers, answer questions, build genuine relationships.
Repeat Business: Customers have a tangible reason to return. Points branded to your business can only be redeemed with you, creating loyalty.
Community Growth: Satisfied customers naturally share their positive experiences, bringing new customers into your ecosystem organically.
How It Works for Customers
Earning Points
Customers earn Growth Points simply by supporting local businesses that participate in Frega:
- Make a purchase at a participating business
- Business issues Growth Points to your account
- Points appear immediately in your Frega wallet
- Each business's points are clearly labeled and tracked
Managing Your Points
Your Frega wallet shows:
- All Growth Points from all businesses in one view
- Which business each set of points came from
- Point values and redemption options
- Transaction history
- Direct chat access to each business
Redeeming Points
When you're ready to use your points:
- Visit the business
- Choose to redeem your points
- Receive your reward (discount, free item, special offer)
- Points are deducted from your wallet
Note: Points can only be redeemed with the business that issued them. This ensures your loyalty to specific businesses is rewarded appropriately.
Pricing and Economics
How Much It Costs
Example: $100 Purchase
A customer makes a $100 purchase. The business decides to issue Growth Points as a loyalty reward.
Business pays: $1 fee (1% of the $100 purchase)
Customer receives: 35 Growth Points (equivalent to $0.35 in future value)
Typical fee structure: Businesses commonly pay 1% of the transaction value to issue Growth Points.
Accounting Treatment (IFRS 15 Compliant)
When a business pays $1 to issue Growth Points, here's how Frega accounts for it:
| Amount | Category | Treatment |
|---|---|---|
| $0.65 | Service Fee | Revenue - distributed to Advocates, Consultants, Licensees, and Frega |
| $0.35 | Deferred Liability | Liability - reserved for future redemption, reduced when points are redeemed |
Why This Matters
The $0.35 deferred liability is NOT revenue. It's an accounting provision representing Frega's obligation to provide future goods or services when the customer's 35 Growth Points are redeemed.
This treatment is fully compliant with IFRS 15, Appendix B, paragraphs B39-B43—the international accounting standard governing loyalty programs.
When points are redeemed, Frega credits the business's service account with $0.35 from this liability, then reduces the liability on the balance sheet. This ensures proper accounting treatment and regulatory compliance.
Revenue Distribution
The $0.65 service fee is distributed to those who provide services to the platform:
- Advocates: Recognition payments for introducing the business to Frega. These payments continue only while platform usage persists
- Consultants: Remuneration for providing support services to the business
- Licensees: Remuneration for regional coordination and local support
- Frega: Platform operation, development, and maintenance
Important: This is remuneration for services provided, not investment returns or passive income. Distribution is based on actual service delivery.
How Growth Points Drive Organic Growth
Growth Points are designed to create natural, organic platform growth:
The Organic Growth Cycle
- Business rewards customer → Issues Growth Points for purchase or engagement
- Customer has positive experience → Feels valued, appreciates the reward
- Customer shares naturally → Tells friends about great local business
- Friends join to support → Register on Frega to earn points at businesses they already use
- More customers for business → Business reaches new community members
- Cycle repeats → New customers have positive experiences and share
This creates sustainable growth driven by genuine utility and positive experiences, not marketing spend or aggressive recruitment.
Integration With Other Frega Tools
Frega Chat
When Growth Points are issued, a communication channel is automatically established. Businesses can:
- Send personalized thank-you messages
- Offer targeted promotions
- Provide customer support
- Build genuine relationships
Transaction Statements
Every Growth Point transaction is recorded, providing:
- Complete audit trail for businesses
- Budgeting information for customers
- Tax preparation data
- Historical analysis
Geospatial Discovery (Rolling Out)
Businesses can target potential customers geographically:
- Identify nearby community members
- Send location-based offers
- Build local customer base
Enhanced Dashboards
Monitor Growth Point performance through:
- Issuance tracking
- Redemption rates
- Customer engagement metrics
- "Get Rid of the Red" management system
Difference From Traditional Loyalty Programs
| Feature | Traditional Programs | Frega Growth Points |
|---|---|---|
| Integration | Fragmented, business-specific apps | Single wallet, all businesses together |
| Communication | Email lists, limited engagement | Direct chat, real-time dialogue |
| Data | Often sold to third parties | Never sold, privacy-protected |
| Cost | Monthly fees + per-transaction costs | Performance-based, pay per issuance |
| Community | Business-centric only | Community ecosystem, mutual benefit |
| Growth | Paid advertising required | Viral growth through genuine utility |
Getting Started
For Businesses
- Register your business on Frega
- Set up your Growth Points program (name, redemption rules, value)
- Start issuing points to customers
- Monitor performance through your dashboard
- Engage customers through Frega Chat
Learn more about Frega for businesses →
For Customers
- Register on Frega (free)
- Discover participating businesses in your community
- Make purchases and earn Growth Points automatically
- Redeem points for rewards
- Share great businesses with friends
Frega Growth Points
In addition to merchant-branded Growth Points, users also receive Frega-Branded Growth Points as a reward for using software and services on the platform.
How Frega Growth Points Work
- Same Value: Frega Growth Points have exactly the same value as merchant-branded points ($0.01 per point)
- Earned By: Subscribing to Frega services (dashboards, accounting, AI agents, etc.)
- Redeemable For: Frega software and services only
- Not Redeemable: Cannot be used at participating merchants
What You Can Redeem Frega Points For
- Platform subscription fees (dashboards, enhanced features)
- AI Agent subscriptions
- Nova AI upgrades
- Premium service features
- Future Frega software and services
Key Differences
| Feature | Merchant-Branded Points | Frega-Branded Points |
|---|---|---|
| Issued By | Participating businesses | Frega platform |
| Earned From | Customer purchases | Platform subscriptions & usage |
| Redeemable At | Issuing business only | Frega services only |
| Branding | Business name (e.g., "Bob's Barber Growth Points") | "Frega Growth Points" |
Why This Matters
Frega Growth Points allow us to reward platform engagement without creating currency-like universal points. They maintain the same loyalty reward structure while keeping redemption clearly defined and compliant.
Important: Frega Growth Points, like all Growth Points, are loyalty rewards—not currency, stored value, or financial instruments. They cannot be transferred, sold, or redeemed for cash.
Questions?
For specific definitions and terminology, see our Definitions page.
To understand how Growth Points fit into the broader platform, see How Frega Works.
For support or more information, contact us.